____13.More accurate product costing information is produced by assigning costs usinga.a volume-based, plantwide rate.b.volume-based, departmental rates.c.activity-based pool rates.d.all of the above.
____14.Yang Manufacturing Company manufactures two products (A and B). The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers:Number of LaborProductNumber of OrdersTransactionsLabor HoursA1550500B101502,000Cost per pool$10,000$8,000$40,000Using functional-based costing, what is the amount of overhead cost to be assigned to Product B using labor hours as the allocation base?____15.Which of the following quantities is an example of an activity driver in activity-based costing?____16.Zipp Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:ProductNumber of SetupsMachine HoursPacking OrdersX1050075Y102,000175Cost per pool$9,000$60,000$15,000What is the allocation rate per setup using activity-based costing?____17.The Xiang plant has two categories of overhead: maintenance and inspection.11 April 2015Page 5 of 16 Acctg 305 Spring 2012 Practice Test Ch4
Costs expected for these categories for the coming year are as follows:Maintenance$50,000Inspection75,000The plant currently applies overhead using direct labor hours and expected capacity of 50,000 direct labor hours. The following data have been assembled for use in developing a bid for a proposed job:Direct materials$500Direct labor$2,000Machine hours500Number of inspections4Direct labor hours800Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.Using activity-based costing and the appropriate activity drivers, the total cost of the potential job would bea.$1,200.b.$1,800.c.$3,700.d.$3,875.____18.Riley, Inc., has identified the following overhead costs and activity drivers for next year:ExpectedExpectedOverhead ItemCostActivity DriverQuantitySetup costs$100,000Number of setups500Ordering costs40,000Number of orders3,200Maintenance200,000Machine hours4,000Power20,000Kilowatt hours80,000The following are two of the jobs completed during the year:Job AAJob BBDirect materials$375 $1,000Direct labor$350 $1,200Units completed100 160Direct labor hours50 80Number of setups1 Number of orders4 Machine hours20 25Kilowatt hours30 50The company's normal activity is 4,000 direct labor hours.If the activity drivers are used to allocate overhead costs, the unit cost (rounded to two decimal places) for JobBB would be45